It is no surprise that the Federal Reserves, in America, has control over federal fund rates, central banking system, and other operations. However, if something impacts these systems then this can create devastation to Americans and other countries. In the article With Steady Gains in Economic Outlook, Fed Leaves Interest Rate Unchanged, written by Binyamin Appelbaum, the Fed examines how Trump’s presidency can alter the interest rate and how that can affect employment, consumers, inflation, job market, and other factors (Appelbaum). If the federal fund rate remains unchanged then, the economy will have a greater chance of growing. On the other hand, if the interest rate does not change then what does this mean to Americans and how does
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This article is related to macroeconomics because it deals with the United states’ economy and its interest rates. In class we have discussed about what a government should act in times of economic despair. This relates to Keynesian and Hayek’s model, if America’s economy does fall into a depression or a recession then the government will either become assertive and follow Keynesian or Hayek’s model. This article is extremely significant because the federal fund rate will affect Americans and other countries as well. This is personally affect me by changing prices of goods, the job market, wages, and other aspects. Even though the interest rate remains unchanged, this is good news because the possible impact on the macroeconomy is that if the interest rate remains unchanged then this will keep inflation low and will help keep the unemployment rate low too. Social and political implications still occur, but not at the rate it used to be. This does not have a huge effect on economy policy, but if there are any major changes then the balance of the system could switch and there could be a recession or depression. This article does present evidence that may be used to support monetary stimulus. By lowering interest rates this helps consumers ability to purchase goods, which leads to a stable
This article is related to macroeconomics because it deals with the United states’ economy and its interest rates. In class we have discussed about what a government should act in times of economic despair. This relates to Keynesian and Hayek’s model, if America’s economy does fall into a depression or a recession then the government will either become assertive and follow Keynesian or Hayek’s model. This article is extremely significant because the federal fund rate will affect Americans and other countries as well. This is personally affect me by changing prices of goods, the job market, wages, and other aspects. Even though the interest rate remains unchanged, this is good news because the possible impact on the macroeconomy is that if the interest rate remains unchanged then this will keep inflation low and will help keep the unemployment rate low too. Social and political implications still occur, but not at the rate it used to be. This does not have a huge effect on economy policy, but if there are any major changes then the balance of the system could switch and there could be a recession or depression. This article does present evidence that may be used to support monetary stimulus. By lowering interest rates this helps consumers ability to purchase goods, which leads to a stable